Nuvista Energy Ltd (NVA.TO)

Drilling some really interesting wells where the economics is really the condensate. This is really a play on oil prices coming back. When you look at the valuation versus a pure oil stock, it is trading at about a 2X lower multiple. Good value. Good management. Well hedged for 2015.

Likes that they hedged out a lot of their gas and condensate production for the next year. Great asset and no debt problem. A lot of other companies would strategically like to own this asset.

The Montney is certainly attractive. It has been an area of focus for many energy companies. Ultimately what is attractive, is an LNG solution at some point. His only concern on this company is that it is a gas weighted name. There is really no catalyst for gas other than the seasonality. It has been a weak, weak time in general. He sees both gas and oil trading sideways for the next year.

(Market Call Minute.) Great company but too expensive as a stock. He would sell this one to buy Tourmaline (TOU-T).

Natural gas has done very well because of a very, very cold April. The massive surface of gas storage has been whittled down to a deficit now, quite significantly. We are now in the shoulder season where weather is pretty tempered, so it is not until the summertime when it gets really warm that we burn a lot of gas to meet air conditioning needs. This stock is approaching levels that are pretty rich and wouldn’t be surprised if the company came to market to try to de-lever to ramp up CapX because they are sitting on a profitable liquids rich play. There are more attractive opportunities elsewhere.

Has been a bit of an enigma for the past couple of years. Great quality assets and great management but market never really liked it going back several months but now has come into its own. Thinks it has probably run its course in terms of value on a relative basis. Great assets. He thinks there are more compelling relative values.

(Market Call Minute) He is looking for an entry point. One of the most exciting plays developing in the basin. Economics continuing to improve via lower well costs and better recoveries.

Has come back from hard times. New management. A well run company. It is a matter of re-deploying capital into the play. It is in an earlier stage of proving out. He bought within the last year.